30th Sep 2013 13:07
LONDON (Alliance News) - Energy firm SSE PLC Monday said it expects to report losses from its retail arm in the first-half, after wholesale gas prices rose significantly.
In an interim management statement for the six months to 30 September, SSE said it expected adjusted pretax profit to be down because its retail arm has been loss-making.
The forecast follows Labour leader Ed Miliband's pledge to freeze energy prices last week if he came into power. Concern had been raised by lobby groups that household energy prices continue to rise wile consumers struggle with payments, as utility companies to post huge profit increases.
Energy firms responded by saying such a move could lead to blackouts.
Shares in SSE and other utility companies fell sharply as a result of Miliband's pledge.
Despite losses at it retail arm, SSE said it expects its wholesale and networks segments to be profitable during the six months.
This meant it was on track to achieve an increase of more than Retail Price Index (RPI) inflation in the dividend to shareholders for the 2013-14 financial year.
The stock was trading at 1,486.00 pence Monday afternoon, up 18.00 pence or 1.2%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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